How Cash-Strapped Startups
Survive and Thrive
What do owners of micro companies, startups, and new enterprises do for capital? For most entrepreneurs, getting started means beating the bushes to find donors, investors, paying customers, and pretty much anyone who’s willing to put some cold, hard, green stuff into the operation. In addition to utilizing the many free promotional strategies available online, other common sources of funds for early growth include crowdfunding campaigns and working out of a home-based office to keep expenses to a bare minimum. After the business gets underway, budget-minded owners sometimes choose to earn advanced degrees, acquire office space, or bring a few extra employees on board. Here are details about a few of the approaches that solve all sorts of financial shortfalls new companies frequently face.
Use Free Marketing Resources
The internet is awash in no cost and low-cost promotional methods. From blogging to social media, the choices are virtually endless. Unfortunately, not all online freebies are created equal. For smaller businesses, it’s often wise to focus on just one social outlet and build up a contact list slowly. Another excellent, very low-cost approach is to add a blog section to your company’s existing website and promote it via social media outlets.
Borrow to Finance an Advanced Degree
If you decide that a master’s degree in business administration, an MBA, is a good idea at this point in your career, it’s important to seek a separate financing solution besides personal funds. As an entrepreneur, it’s essential to protect your current capital so you can use it to cover operational costs. What about the degree? A sound strategy is to take out a student loan from a private lender to cover all educational expenses. A private lender offers flexibility as well as competitive rates and terms. Plus, by turning to a reputable educational lender, you’ll be able to hold on to the precious funds you’ve built up for running your company.
Leverage the Power of Crowdfunding
Consider setting up a crowdfunding page on one of the major platforms. Remember to tell your company’s unique story in a personal way and invite prospective investors to contribute any amount they wish. But don’t forget to offer something in return, like a hefty discount on future purchases, a percentage of ownership, or something equally valuable.
Work From Home
For so many first-time owners, working from home is the ideal way to save a significant amount of money on rent. There is still ways to optimize remote productivity even though you are not in a formal office setting. Think about using this approach for at least one year, perhaps longer. After you begin to turn a profit and have a positive cashflow, shop around for small spaces that are just large enough to accommodate your daily needs. But be careful to aim for a short-term lease of six months or one year, at most.
Take Advantage of Cash Discounts
When you begin making regular purchases from vendors, always pay early enough to get any cash discount that’s available. It’s common for vendors to entice their commercial customers with two-percent price reductions for fast payment, typically within 10 days of purchase. These small perks add up, and you can potentially save thousands of dollars just by paying your bills quickly.
